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Motivation is one of the most researched yet crucial topics in academia from various perspectives. Despite this, researches show mixed results about the effect of extrinsic motivation on intrinsic motivation and organizational performance. Studies in Ethiopia also lack causal analysis and theoretical underpinning that made contributions from academia very little. Hence, this research is important to assess the effect of extrinsic motivation on intrinsic motivation and organizational performance from a cognitive evaluation theory perspective. The researchers adopted an explanatory research design with a quantitative approach. The entire 119 employees of the Oromia Seed Enterprise, Bale branch were included in the study to collect primary data through a close-ended questionnaire. The collected data was processed by SPSS software version 20. The relationship analysis was addressed by correlation and binary logistic regression analysis. Seen from extrinsic and intrinsic motivation aspects, the findings of the study showed that Oromia Seed Enterprise had a moderate level of organizational performance and a moderate level of employees’ motivation. The correlation analysis result indicated that employees’ extrinsic and intrinsic motivation had a positive relationship with organizational performance. The binary logistic regression analysis also indicated that extrinsic and intrinsic motivation had a positive and significant influence on organizational performance. However, the interaction effect of intrinsic and extrinsic motivation on organizational performance was not significant, implying the absence of influence when both intrinsic and extrinsic motivations happen at the same time. Finally, the study results have a theoretical contribution for compensating the lack of actual experience in the Ethiopian organization’s context. Equally, the understanding of the moderated relationship among the study variables may encourage Oromia Seed Enterprise and its managers to develop a practical motivation system, which entertains the complex interaction of motivation variables to improve organizational performance. In addition, studies of this nature can inform policymakers to strengthen an incentive system as well as other motivation veins in the Ethiopian public organizations.

Predicting organizational performance from motivation in Oromia Seed Enterprise Bale branch